Auto Component Exports & ACMA

Suppose you only ever counted the value of finished cars rolling out of a factory and ignored everything that went into building them, engines, transmissions, steering systems, electronics, thousands of individual parts each supplied by a separate specialist manufacturer. You'd be missing most of the actual industry. India's auto component sector, tracked by the Automotive Component Manufacturers Association, ACMA, crossed Rs 7.6 lakh crore in turnover in FY26, more than doubling over just five years at a compound annual growth rate of 17 percent.

Most of that output, Rs 6.63 lakh crore worth, flows to original equipment manufacturers, the Marutis and Hyundais and Tata Motors of the world, growing 16.3 percent as vehicle production itself expanded, while the remaining roughly Rs 1.08 lakh crore serves the aftermarket, spare parts and repairs for India's steadily ageing and growing vehicle fleet, itself a segment being reshaped by the formalisation this site's other coverage of the sector touches on.

The export side of this story is where India's component industry increasingly competes on the world stage rather than just supplying domestic carmakers, exports reached $24 billion in FY26, up 5 percent, with engine components and drive-transmission-and-steering systems together accounting for more than half of everything shipped abroad, and Europe posting the strongest growth of any export region.

Every time a global carmaker sources a transmission part or engine component from an Indian Tier-1 or Tier-2 supplier rather than manufacturing it in-house or sourcing from China, that sourcing decision is this component ecosystem, decades in the building, doing exactly what India's broader manufacturing policy push has been trying to achieve, becoming genuinely competitive on cost and quality at a global scale, not just a captive domestic supplier.